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Business appraisal

What would your business sell for today? A market appraisal answers that question with evidence from real New Zealand sales, so you can plan an exit, a purchase or the next few years with clear eyes.

How we appraise a business

Pricing is the decision that shapes every other part of a sale. Price too high and serious buyers move on before they make an offer. Price too low and you leave money on the table that took years to build. Our appraisals are designed to land the asking price where the market will meet it.

We look at your last three years of financial statements, normalise the earnings for owner salaries and one-off items, and compare the business with recent sales of similar businesses in New Zealand. We then weigh the things buyers pay more or less for: how dependent the business is on you, the strength of the team, the lease, customer concentration and the state of the systems.

The result is a written appraisal with a likely sale range, an explanation of how we got there, and a short list of the changes that would lift the price. Want a rough number first? Our business valuation calculator gives an indicative range in a few minutes, and the guide to business valuation in NZ explains what sits behind it.

Appraisal or valuation?

In New Zealand a formal business valuation is prepared by a chartered accountant or registered valuer, and that is what you need for tax, relationship property, shareholder disputes or court. A market appraisal from a broker tells you what the market is likely to pay and is the right starting point for a sale. If you need a formal valuation we will refer you to a suitable professional and work alongside them.

Commercial building housing a New Zealand business

Most of our appraisals are for owners weighing up a sale. They are useful for other decisions too.

Owners also ask us for an appraisal when they are:

  • Planning an exit in two to five years
  • Bringing in a business partner or shareholder
  • Buying out a partner or family member
  • Refinancing or raising working capital
  • Passing the business to the next generation
  • Reviewing insurance and personal cover
  • Setting management incentives
  • Testing whether an unsolicited offer is fair
  • Deciding between selling and growing

Two kinds of report

Most owners only need the first. We will tell you plainly if your situation calls for the second.

Market appraisal

Prepared by our brokers for owners who want to know what their business would sell for. It covers normalised earnings, comparable New Zealand sales, the likely sale range and the factors that would move the price. Clear enough to share with your accountant and your family.

  • Likely sale range and recommended asking price
  • What buyers will value, and what they will discount
  • Practical steps to lift the price before listing
Request a market appraisal

Formal valuation

Prepared by a chartered accountant or registered valuer for situations where an independent, defensible opinion of value is required: relationship property, shareholder disputes, tax matters, estate planning and some bank lending. We do not prepare these ourselves. We refer you to specialists we trust and supply the market evidence they need. See when you need an independent business valuation.

  • Independent opinion of value for legal and tax purposes
  • Prepared to professional valuation standards
  • We provide the market data and coordinate the process
Ask us for a referral
Business valuation welding workshop

Find out what your business is worth to a buyer

Send us your last three years of financials under a confidentiality agreement and we will come back to you with a written market appraisal and a plain conversation about your options.

What we need from you

  • Three years of financial statements
  • Current year management accounts
  • Lease summary
  • Staff and owner roles
  • Half an hour of your time